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 Replies: 21 / Views: 2,139 |
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Valued Member
United States
66 Posts |
Being new to collecting, I decided it would behoove me to find a local coin store for supplies, cases, books, some honest advice, etc. Maybe a little buying and selling, tho I do most of that online so far.
I took my local phone book on a trip around town visiting stores, I also took one of my Morgans that I am very sure of the grade on, it's an 1878 Carson, very strong XF, sometimes mistaken for AU.
I visited 5 shops within 10 miles of my home, at each I purchased some minor items, made small talk, and asked about the retail value of my morgan.
Four out of five dealers told me my Carson was worth less than $30 and offered to take it off my hands. One of went so far as to tell me it was worth TEN BUCKS.
I'm very interested in collecting, and certainly hooked, esp on Carson City coins, but WOW, talk about being disappointed. I guess I learned one of my first lessons, take everything a dealer says with several grains of salt. Edited by Noxx
10/04/2006 12:48 pm
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Valued Member
 United States
66 Posts |
For the record, the last dealer I visited told me my coin would retail for around $120, altho he wasn't interested in buying it at that price, obv. I told him he was new "home" shop.
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Pillar of the Community
United States
772 Posts |
A lot of people try to get something for nothing. Not all coin dealers are bad, but a lot of them are trying to make a living, and they feel they have to rip people off to do so.
The people I deal with on a day to day basis are "pocket/briefcase dealers". Ones that aren't trying to make a living. I buy and sell with 3 different guys normally 4 or 5 days out of the week. If the feel they can make a couple bucks on something, they will buy it. A dealer can't operate on just a couple bucks, they need that 50%+ profit margin to get by.
Like myself, most of the pocket dealers try to make about 10% on any coin sold. Sometimes 10% is made easily, sometimes you loose a couple %. I am not gonna get rich doing it, but it will help me support my coin addiction.
If somebody brought me a coin worth $150, I would try to buy it at $135-140, as would the other guys I deal with.
I actually do not sell to or buy from full time dealers, because of the reasoning you gave. They normally try to lowball you when you want to sell, or get top dollar when you try to buy.
It sounds like you are in a good coin area (there is not one coin shop within 30 miles of me). I would suggest going to a local coin club and try to find the honest ones.
At least that last dealer was pretty honest. Wholesale price is about $95-100 for the coin you described, so retail of $120 sounds about right. So if full time dealers are all you can find, it definitely sounds like you found the one I would suggest dealing with from now on.
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Pillar of the Community
United States
7123 Posts |
Hi Noxx
Dealers are like everyone else,, some are great and others not so great !!
When you find a good honest dealer ,, support his business with your business !!
Rick
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Pillar of the Community
United States
1203 Posts |
What actually kept you from getting burned was you knowledge of the particular coin and it's estimated condition and worth. Nothing replaces knowledge when it comes time to either buy or sell. Reading and learning is like money in the bank when you go to do any business in coin collecting.
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Valued Member
United States
69 Posts |
i have a coin dealer within walking distance of my house. not only is he a stuck-up snob, but he's dishonest and unwilling to give advice to people new in collecting. plus, like jdheyne said, he tries to get something for nothing, and vice versa with selling. I wanted to strengthen my Indian Head penny collection, but unfortunately it'd cost 5-7 times more to buy from him than any other coin store ive ever been to. i have seen a wonderful coin store one time though a few miles from where I live. the two ment hat ran the store were very helpful with what they were selling, and offered great advice towards some of my concerns. happy with their service, I did do them justice in purchasing some of their stuff (i feel that if a coin dealer is a good dealer, than it is only nice to buy something from them, whether it expensive or not). though it's in bad condition, I bought a canadian one dollar bill (ottawa, 2nd Jan, 1937) for 3 dollars, and a Wheat penny from 1955 that looks like its made of aluminum for a mere 50 cents. I also bought my loupe from there because they had them at a reasonable price ($3.50) |
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Pillar of the Community
United States
533 Posts |
Not all dealers are bad, but like jdheyne said, they are trying to make a living. One thing that I have experienced is that prices keep getting better and better the more the dealer knows me. I don't feel like they were ripping at first (the prices weren't that off), but they were certainly making more than they are now! I am not sure how to feel about this, but would definitely argue and remind you that knowledge is power. The BEST way to avoid getting rolled is to know what you are talking about and paying for. If you are anything like me, this means asking friends who are MUCH more experienced for help!  This forum is great for that! |
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Pillar of the Community
United States
986 Posts |
If you can, attending a major coin show will be of enormous benefit for you. There'll be a lot of very respectable dealers there, and shows are a great place to enhance your collection. Of course, you can't expect to get full book price for your coins, but at least you won't get ripped off (usually). The greysheet will let you know bid/ask prices on a wholesale level that the dealers use.
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Pillar of the Community
United States
1327 Posts |
I agree with some of the others not all dealer are bad. Where I live there are 5 full time dealer, not pawn shops. 3 out of the 5 I do not deal with because of just what you were taking about. But the other 2 I go to more regularly. The one I spend most of my time at. He is a very honest dealer and he away sell for under the price and give a far price when buying. one thing he told me when I was talking to him about one day becoming a dealer is that don't plan on making it rich at this. but if you can make a decent living at it. he said the ones who make it rich are usually dishonest. so I would assume that is what you ran into dealer who are trying to make it rich and take advantage of others. also I bet that most of them had there coins over graded as well. Also the guy I deal with is semi retired so he said but he sure has a very busy shop.
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Pillar of the Community
United States
1454 Posts |
Not all are bad. Just most. The trick is finding one that isn't bad and stick with that particular shop no matter what. I do most of my buying on Wal-Bay unfortunately. They aren't the best either but they are at least convenient. I have a shop here I like to go to but I usually have to go by myself because the only shop that the wife will go to I don't like so much. It is a huge shop so they have several people helping out, the only problem is, most of them are uppity, rude and try to make it known that they know more than you do and are doing you a favor. The shop I go to is run by 1 guy and he has a couple of helpers who take over when he goes to shows. They are pretty cool guys too. My wife hates going because it is too small and it is hot in there and they don't have jewelry like the other place. So, I leave her at home alot when I go coin shopping.  |
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Pillar of the Community
United States
2365 Posts |
I've been fortunate to find a very fair dealer. He buys at Gray Sheet pricing and sells at RedBook. If I see something on a particular coin that brings the grade down a bit, we will discuss it and 9 times out of 10 he will agree with me on a lower price. I've shown him that I have the knowledge and he has shown me the same. He's very respectful and most helpful. |
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Pillar of the Community
Australia
853 Posts |
Noxx.....you are obviously a smart collector and done you homework before you flashed your coin about. From a dealers perspective...although I do not condone ripping collectors off you should also ask how they came about that price.
As a professional dealer I am often confronted with the situation where I have 20 or more of an item that catalogues for for $100, so my need for my 21st of that item just is not there so unless I get it as a very good price I have no interest in it. Now if the dealer is fair he will advise that when he offers a price...if not well...
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Pillar of the Community
United States
2365 Posts |
Bigfella has a very good point! My dealer always will explain to my the why and why not questions that I have. If I don't like what he has to offer and for his good reasons then I just simply will pass. It took my dealer and I a while to build a rapport. From my own observations, a coin dealer deals with a lot of kookie people. He got to know me and vice versa and now we are coin admiring friends as well as business owner and customer.
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Pillar of the Community
United States
1626 Posts |
It may also help to tell the dealer up front, your not interested in selling it. By doing this, it will take the idea out of their head that they may make a profit off you. I agree with jdheyne as well. Not all dealers are bad.
Tim
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Moderator
 United States
23525 Posts |
In my area there are a number of dealers. I have found one who I trust. It is no wonder he is also the President of the local coin club. Because of my particular coin interest, I buy most of my coins online. It would be very difficult for me to fly 1/2 way around the world each time I wanted to purchase a coin. No I do no buy all of my coins from one dealer. But if you are looking for an American Coin look up Bobby and Susan- who started this forum If you want Australian or New Zealand coins look up Bigfella he posted above.. I believe we have a few other dealers on this forum, but I can not list hem from memory so this is an invitation for the rest of you to chime in. Yes I know we already have a tread similar to this but repetition is a good thing.  |
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Pillar of the Community
Australia
1091 Posts |
"One of went so far as to tell me it was worth TEN BUCKS." Wow, These words would of jumped from out of my mouth... "Do you have any similar quality coins here that I can buy. I'll give you $15 each for them." That would expose his Fraud. I've been in my local coin shop when non colectors walk in and show the dealer a coin or two asking what they are worth. He examines the coins and gives them his opinion of there value. They tend to react as if the price is too low. He wanders over to the book shelf and brings back the actual BOOK, finds the coin, and lets them read the book price themselves. Works a charm, LOL, He's an honest man.  Edited by toast
10/05/2006 08:54 am
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Replies: 21 / Views: 2,139 |
Posted 10/04/2006 1:51 pm
